ONEOK Inc (OKE)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 20.51 | 18.56 | 20.60 | 25.37 | 19.55 | 25.33 | 7.91 | 8.62 | 8.80 | 10.71 | 13.30 | 14.70 | 12.74 | 23.97 | 22.49 | 22.66 | 16.27 | 20.80 | 13.59 | 7.83 |
| Days of sales outstanding (DSO) | days | 39.26 | 23.64 | 26.56 | 36.23 | 36.27 | 33.22 | 19.45 | 19.61 | 24.98 | 27.71 | 30.34 | 32.68 | 31.82 | 39.93 | 35.18 | 34.60 | 35.46 | 30.34 | 25.48 | 19.07 |
| Number of days of payables | days | 59.97 | 37.57 | 39.02 | 47.06 | 47.85 | 47.20 | 22.16 | 23.21 | 27.70 | 33.02 | 41.27 | 43.54 | 39.68 | 55.07 | 52.05 | 56.99 | 51.38 | 43.22 | 50.85 | 44.36 |
| Cash conversion cycle | days | -0.20 | 4.63 | 8.14 | 14.54 | 7.97 | 11.36 | 5.20 | 5.02 | 6.09 | 5.40 | 2.37 | 3.84 | 4.88 | 8.83 | 5.62 | 0.26 | 0.35 | 7.93 | -11.78 | -17.45 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 20.51 + 39.26 – 59.97
= -0.20
The cash conversion cycle is a key financial metric that represents the time it takes for a company to convert its investments in inventory into cash received from sales. It is calculated by adding the days inventory outstanding (DIO) to the days sales outstanding (DSO) and then subtracting the days payable outstanding (DPO).
Analyzing the cash conversion cycle of ONEOK Inc from March 31, 2020, to December 31, 2024, we observe the following trends:
- The company had a negative cash conversion cycle in the initial periods, indicating efficient management of its working capital.
- From September 2020 to March 2021, the cash conversion cycle remained close to zero, suggesting that the company was able to collect cash from customers almost simultaneously with paying suppliers.
- In the subsequent periods, the cash conversion cycle increased, reaching a peak of 14.54 days on March 31, 2024, indicating a longer time taken to convert inventory into cash.
- The cycle fluctuated over time, with some periods showing improvements in efficiency while others indicating challenges in managing working capital effectively.
Overall, the analysis of ONEOK Inc's cash conversion cycle reflects varying levels of efficiency in managing its working capital and converting investments in inventory into cash throughout the period under consideration. Monitoring this metric can help stakeholders assess the company's liquidity and operational efficiency.
Peer comparison
Dec 31, 2024